The dollar reached $ 46.40 while the trade war threatened with concern (moderate increase of the BCRA with futures trading)

He agreed with the Single and Free Exchange Market (MULC) where the American currency rose to 30 cents to 45.10 (rose to 1.8% to $ 45.60) in a cycle in which the MSCI index of emerging market currencies has erased all its gains in 2019, given the escalating trade tensions between Washington and Beijing that is hitting world markets.

"The first leg of the week saw a very complex international scenario and a fall in regional currencies against the dollar, which had an impact on the development of operations in the local market," said operator Gustavo Quintana , from PR Corredores of Change

And he pointed out that "The official strategy, which has reiterated the intervention mechanism with sales on the futures markets, has moderated price developments by obtaining a slightly lower adjustment than would have occurred in a context. similar to the one that occurred prior to the amendments to the internal market regulation Central on the foreign exchange market ".

In addition, ABC Mercado de Cambios said that "the strike of the greenback started early in Asia, continued in Europe and moved to the United States by changing the price of all currencies, especially those of emerging countries ".

The demand for coverage remained particularly intense during the course of the first part of the day, a period during which the maximum of the date was recorded, amounting to $ 45.60, or four hundred and twenty more than the last closing of last week.

However, with respect to the closing, the appearance of BCRA with short positions in the futures markets again moderated the change in values, causing prices to fall to a minimum level of $ 45.10.

The total volume traded on the foreign exchange market was US $ 689 million, 32% lower than on Friday.

MSCI Inc. will announce the new composition of its indices today at 7:00 pm following the mid-year review that includes the return of Argentina to the Emerging Markets category.

The transition to emerging markets is seen as an opportunity for preferred shares, as it allows investment funds to sell a new portion of their capital to Argentine ADRs.

Seventh rate decline

As usual, the central bank makes the first auction Liquidity Lyrics (Leliq) a 7-day term for $ 149,639 million, at an average processing rate of 71.754%, with a high of 71.98% and a minimum of 71.399%.

The second was made for $ 46.071 million. The average harvest rate was 71.705%, with a minimum rate of 71% and a maximum of 71.9778%.

Meanwhile, the average total rate of the day, equivalent to the policy rate, was 71,743%, seven times less, and the total amount allocated was $ 195,711 million.

In addition, the monetary authority carried out three sales auctions on the same day on behalf of the Ministry of Finance. The first was in the middle of the morning for $ 30 million. Afternoon, he organized a second bid of 27 million US dollars, which he completed with a third at the close, for 3 million US dollars.

It should be kept in mind that the Central Bank has made two daily auctions of $ 30 million each since April 15 and that it is the first time since its implementation in three cases (the amount of total is not changed).

International context

The ride in the Trade negotiations between the United States and China it will continue to be the focus of the region's currency markets, which will continue to keep pace with investors' risk appetite.

The global financial markets were convinced that the latest round of talks between the world's two largest economies would end last week to end a bitter trade war that is approaching a year away.

However, investors were beaten after the president of the United States, Donald Trump, it went from threats to action and increased customs duties of $ 200 billion on goods imported from China to 200% dollars, right in the middle of the series of meetings in Washington.

Other markets

In the informal market, the blue rise from 20 cents to $ 46.20, according to the investigation on this support in the caves of downtown Buenos Aires. Meanwhile, Friday's "contado con liqui" yielded 17 cents to 45.07 dollars.

In the interbank money market, call money operated at 69%.

On ROFEX, US $ 1,097 million was traded, only $ 5 million less than Friday. The shortest periods accounted for just over 50% of the total exploited. The final prices for these months of May and June finally worked out at $ 46.69 and $ 48.86 (TNA 61.28% and 59.67%). October, with 61 million US dollars operated, ended at 58.40 dollars (TNA 61.86%).

Finally, BCRA gross reserves decreased by $ 319 million on Friday to $ 68,111 million (in the course of the month they sold $ 3,544 million).